Boston Federal Reserve President Susan Collins signalled that she remains undecided about whether to support another rate cut at the Fed’s upcoming meeting.
Speaking to reporters on Saturday at the Boston Fed’s annual economic conference, Collins said she never commits to a position before entering the policy meeting itself. Her remarks follow comments earlier in the week in which she expressed hesitation about easing further in December, citing still-elevated inflation and a policy stance she views as only “mildly restrictive.”
Collins reiterated that rates are not tight enough to guarantee price stability and warned that upside risks to inflation persist. Keeping policy mildly restrictive, she said, remains important to ensure inflation continues to drift lower.
Collins also highlighted concerns voiced by small businesses in her district, who are grappling with higher costs and uncertainty around monetary policy. She acknowledged the labour market has cooled, but said she is watching carefully for deeper signs of weakness — particularly rising unemployment among younger, college-educated workers, a development she said carries meaningful economic implications.
While noting risks on both sides of the mandate, Collins said she would take further softening in employment “very seriously.”
